A wide body of research focused on the effects of highway spending suggests that major new investment in U.S. roads would generate little, if any, long-term economic gain. By one estimate, the U.S. economy would be 3.9% smaller today without the interstate highway system. In other words, road spending reallocates the pie but doesn’t make it bigger. That’s not to say that billions of dollars in new government road spending wouldn’t boost growth in the short term. “The more comfortable ride is getting you the improved quality of life but it’s not necessarily adding tons of private sector productivity," Mr. Fernald said.

Source: Mint July 04, 2021 14:03 UTC